Ayer proposes RM138m related-party purchase of Kuchai Lama land
Ayer Holdings Bhd has proposed to buy two adjoining freehold land parcels along Jalan Kuchai Lama, Kuala Lumpur, for RM138 million cash in a related-party transaction. The purchase price is 4.83% below the RM145 million market value assessed by CBRE WTW Valuation & Advisory. The deal requires shareh
PETALING JAYA (Sept 29): Property developer Ayer Holdings Bhd has proposed to buy two adjoining freehold land parcels along Jalan Kuchai Lama, Kuala Lumpur, for RM138 million cash in a related-party transaction. Its wholly owned subsidiary, Kuchai Urban Development Sdn Bhd, has entered into a conditional sale and purchase agreement with Bukit Cemerlang Sdn Bhd, Ayer said in a Bursa Malaysia filing. The parcels measure a combined 36,891 sq m, or about 9.11 acres.
The purchase price is RM7 million, or 4.83 per cent, below the RM145 million market value assessed by CBRE WTW Valuation & Advisory Sdn Bhd as at Sept 15. Ayer said the acquisition would expand its landbank beyond Bandar Bukit Puchong, where its property development business has been concentrated. It has not finalised a development plan for the Kuchai Lama site, although its board considers the land potentially suitable for a mixed-use development, subject to feasibility studies, market conditions and regulatory approvals.
The parcels carry agricultural conditions for fruit trees and coffee respectively. Ayer said it would need to apply to convert the land to building (commercial) use before proceeding with any development. It understands that the site falls within an area zoned for mixed use, but conversion approval and the premium payable remain subject to the relevant authority’s decision.
Ayer is buying the land on an “as is where is” basis. It disclosed unauthorised occupants on relatively small portions of the site and said it would be responsible for clearing them before development begins. The process could add costs or cause delays.
The deal is classified as a related-party transaction because certain Ayer directors and major shareholders are family members of the vendor’s disclosed major shareholders. The interested directors have abstained from board deliberations and voting on the proposal, while BDO Capital Consultants Sdn Bhd has been appointed independent adviser. Ayer said the final funding mix has yet to be decided. Its illustrative estimate assumes 20 per cent from internal funds and 80 per cent from bank borrowings.
The acquisition requires approval from Ayer’s non-interested shareholders at an extraordinary general meeting, as well as any other approvals required. Subject to the approvals, Ayer expects to complete the purchase by the first quarter of 2027.
